With the recovery in CV industry and proposed implementation of new regulations, Rane Group is embarking on a big growth journey for the next three years. The Chennai-based leading auto component house has chalked out a capital expenditure of over Rs.670 crore for this period to support its growth plans.

It is targeting a return on capital employed of 20 per cent plus and a growth rate of 15-20 per cent and 25 per cent contribution from the international business by 2018-19.

The group’s vision is to maintain market leadership in its business segments and achieve total sales of Rs.5500 crore by 2018-19.

“With the Indian economy firmly on a growth path, I am confident of the future of the auto component industry and that of Rane’s. India has a low penetration of passenger cars, two-wheelers, commercial vehicles including public transport and this will ensure the growth of the auto industry and its ancillary segments. And we are ready to tap this increasing opportunity,” L Ganesh, Vice Chairman of Rane Holdings told shareholders in company’s latest annual report.

Rane (Madras) is looking at a CAGR of 27 per cent in sales and ROCE of 20 per cent by 2018-19. The company, which makes steering and compressor parts and other products, eyes growth through new businesses in passenger car segment and hydraulic products, besides higher revenue from international trade.

The Group achieved double-digit growth in total sales at Rs.3261 crore during 2015-16 compared to Rs.2921 crore in 2014-15, after a period of low growth and stagnation. Exports accounted for 16 per cent of the gross sales.

IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.